General Concepts 7 min read
Supply
Introduction Definitions and Basics ● Supply, from the Concise Encyclopedia of Economics ● The most basic laws in economics are the law of supply…
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Demand
Introduction ● The word “demand” refers to what you want. Of course, you can’t always get what you want. However, you…
General Concepts 14 min read
Exchange and Trade
Introduction ● The words “exchange” and “trade” refer to the same activity–people who have one thing and want a different thing…
General Concepts 10 min read
Comparative Advantage and the Benefits of Trade
Introduction If you do everything better than anyone else, should you be self-sufficient and do everything yourself? Self-sufficiency is one…
General Concepts 12 min read
Supply and Demand, Markets and Prices
Introduction Definitions and Basics ● Supply and Demand. Part 2. Comparisons on Price, at SocialStudiesforKids.com. ● So we have supply, which is how much of…
General Concepts 8 min read
Division of Labor and Specialization
Introduction Definitions and Basics ● Definitions: Adam Smith, biography from the Concise Encyclopedia of Economics ● Smith saw the main cause of prosperity as increasing…
General Concepts 9 min read
Economic Growth
Introduction Definitions and Basics ● Economic Growth, at Answers.com ● An increase in the capacity of an economy to produce goods and services,…
General Concepts 7 min read
GDP
Introduction Definitions and Basics ● National Income Accounts, from the Concise Encyclopedia of Economics ● The broadest and most widely used measure of national…
General Concepts 6 min read
Inflation
Introduction Definitions and Basics ● Inflation, from the Concise Encyclopedia of Economics ● Economists use the term “inflation” to denote an ongoing rise in…
General Concepts 6 min read
Real, Relative, and Nominal Prices
Introduction ● Definition: The nominal price of a good is its value in terms of money, such as dollars, French francs,…
General Concepts 9 min read
Opportunity Cost
Introduction ● Opportunity cost refers to what you have to give up to buy what you want in terms of other…
General Concepts 13 min read
Incentives
Introduction In economics, incentives matter. If you make decisions without thinking about your personal incentives, let us know. Definitions and…